ENG

Bitclave Illegal ICO to Return $25M to Investors, SEC Announces

News
Fri, 05/29/2020 - 10:52
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Vladislav Sopov
The Securities and Exchange Commission has stopped another beneficiary of the 2017 bubble. Instead of ‘leveraging the personal data’, Bitclave will pay back all investors
Bitclave Illegal ICO to Return $25M to Investors, SEC Announces
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Yesterday the United States Securities and Exchange Commission released an official statement about the unfortunate fate of BitClave, the U.S.-based ICO project with Slavic roots.

Meaningful relief to investors

According to the SEC order, the BitClave project, incorporated as BitClave PTE Ltd., conducted an unregistered initial coin offering that started in June 2017.

The project managed to raise cca. $25.5M from 9,500 investors. They received Consumer Activity Tokens or CAT, Ethereum-based coins. The regulator highlights that CAT had all of the characteristics of a security.

E.g. the team of BitClave actively promoted its listing on third-party exchanges and emphasized the opportunity of its price to grow in the future.

Despite this fact, all coding and marketing activities of the product are frozen and its team is showing no interest in maintenance or further development of the platform.

Severe penalty

The team of Bitclave reached an agreement with the SEC to refund all $25M to investors through a dedicated Fair Fund.

Also, they are being charged a prejudgment interest of $3.5M, and a penalty of $400,000. CAT must be removed from all trading platforms and permanently disabled by Fair Fund managers.

It should be reminded that BitClave raised funds for the development of a decentralized search engine and personal data processing system.

Recently, the SEC reached an agreement with another ICO from 2017, Enigma. This team must refund $45M to ENG token holders and pay a $0.5M civil penalty. Furthermore, the project is obliged to register ENG as a security and to send periodic reports to the SEC.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?

News
Fri, 10/23/2020 - 09:24
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Vladislav Sopov
Grayscale, undisputed giant of institutional crypto investments, is celebrating another monstrous milestone, adding a nine-digit sum to AUM in 24 hours
Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?
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Contents

Grayscale is an investment company that provides the clients with an exposure to digital currency markets eliminating the need to buy tokens. The firm does it by selling shares of 'trusts' related to certain digital assets. The recently started FOMO has already brought Grayscale's 'asset under management' (AUM) values to previously unseen levels.

Grayscale assets are on steroids

In its most recent report shared in a tweet, Grayscale Investments stated that its net AUM now surpasses $7,300,000,000. Mostly, this upsurge should be attributed to the spikes of Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) prices.

Grayscale adds $300M to its AUM in 24 hours
Image by Twitter

Its founder, CEO of Digital Currency Group Barry Silbert, unveiled that Grayscale’s holdings added a whopping amount of value in the last 24 hours.

Added a cool $300 million in AUM in one day

In terms of separate ‘trusts’, the most impressive increase is associated with Litecoin (LTC). Its value added almost 10% bringing its total to over $34 mln. 

Bitcoin (BTC) allocation surged above $6 bln with a 5% increase. Notorious Grayscale Ethereum Trust (ETHE) added 6% and now is valued at $942 mln.

PayPal assists Grayscale

By contrast, Stellar Lumens (XLM) and Bitcoin Cash (BCH) trusts witnessed mediocre increases of 2-3%. The only integral product of Grayscale, Large Cap Trust that unites the most valuable coins under its umbrella, therefore, added less than 4%.

The numbers of Grayscale Investments positions rocketed due to the rapid spike of crypto prices associated with PayPal’s decision to add major digital assets to its instrument toolkit.

As covered by U.Today previously, PayPal announced that Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) will be added as payment methods by the end of this year.

  

Following this surprising news, Bitcoin (BTC) revisited its multi-months high over $13,000. At press time, its price has slightly retraced and flirts with the $12,800 level.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)